If you're surprised by how quickly your Social Security benefits disappear each month, you're not alone. It's tough to argue that Social Security alone, even with small cost-of-living adjustments (COLAs), is enough to keep a retiree comfortable throughout periods of high inflation.

This is especially true if the things you buy most are hit hard by inflation, like groceries and gasoline. A recent AARP survey indicates that 78% of those counting on Social Security are concerned that their monthly payments won't be enough for them to get by.

Whether you're living on Social Security alone or it's a part of your overall retirement strategy, now may be the time to enact new financial habits (and bring back old ones that have worked for you in the past. 

Image source: Getty Images.

Create a new comprehensive monthly budget

By now, you've been paying bills for long enough that you probably think you could do it in your sleep (and you probably could). However, hard times call for more stringent measures. It's a three-step process:

1. Make two lists

On one, list all essential expenses, like housing, groceries, transportation, and utilities. On the other list, include discretionary expenses such as dining out, membership services, and subscriptions.

2. Comb through the discretionary expenses list

Is there something you could cut or at least cut back on? For example, could you get by with two streaming channels rather than four? Could you cancel a membership or subscription you no longer use? The goal is to put a pin in unnecessary spending without feeling deprived.

3. Give it a month

Once you've made cuts, give yourself a month to see how it's working out. If you find that you don't miss the expenses you cut, don't be afraid to go back into that discretionary list and see what else you can trim.

You can even take a look at your grocery budget to see if it includes purchases you could cut back on, like alcohol or name-brand items. A recent CNET study found that you can save roughly 40% by purchasing generic products.

Downsize

While interest rates don't make now a fabulous time to take out a new mortgage, if you can sell your home and relocate to an area where you can pay cash for a smaller home (or by taking out a smaller mortgage), simply downsizing can save you across the board. For example, you could end up spending less on everything from property taxes to utilities.

Consider an alternative living arrangement

Explore your co-housing options. A la The Golden Girls, consider living with other retirees to share the costs and responsibilities of your home. As a bonus, living with people you like is a good way to ward off loneliness.

Sell unused assets (and other stuff)

In the book The Gentle Art of Swedish Death Cleaning, author Margareta Magnusson discusses the value of letting go of the things you no longer need or use as you age. Not only does embracing minimalism declutter your space (and mind), but it also leaves less for your family and friends to deal with after you've died.

In addition, depending on how much "extra" you have, you could also rake in an impressive amount of money by selling it.

Look into Medicare Savings Programs

If you're a low-income senior (in 2025, income limits range from $1,325/month to $1,781/month, depending on the program), take a look at the available Medicare Savings Programs (MSPs).

Also, depending on which of the four programs you're eligible for, an MSP could cover your Medicare Part B premiums, deductibles, coinsurance, and copayments. It may also qualify you to receive the Medicare Part D Low Income Subsidy -- a subsidy that helps you pay for prescription drugs.

While there is a limit on how much you can own in available resources, the rules vary slightly by state. For more information and to apply, contact your local Medicaid office. You can find your state's contact information on the Medicaid website. 

Quick note: Despite accessing information about MSP through the Medicaid website, MSP is not the same as Medicaid.

Seek financial counseling

You're never too old to reach out to a professional for a free second opinion. Suppose existing debt is gumming up your monthly budget. In that case, reputable organizations like the National Foundation for Credit Counseling (NFCC) and the National Council on Aging (NCOA) have partnered with certified agencies to help seniors create a budget, manage debt, and come up with financial strategies for the future.

It probably wasn't part of your retirement plan to run into financial problems in your senior years. However, you've lived long enough to know that most problems have a solution. The first step is to find one or two that work for you.